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Avalara Help Center

Why didn't tax calculate on my invoice?

Overview

You received a $0 tax result on a transaction that should have produced tax.

Environment

Avalara AvaTax

Resolution

  • A zero dollar tax calculation can be explained by any of the following:
    • Nexus for the state has not been enabled
      • Make sure both State and Local nexus is enabled.
      • Make sure that the date of the transaction falls between the begin and end dates of the nexus for the particular jurisdiction.
    • A $0.0 amount was passed at the line level
    • There is a rule affecting the item or jurisdiction.
      • See if you have any tax rules (organization > tax rules)
    • A tax code, either custom or an AvaTax System tax code, is being applied.
      • First, make sure you do not have any item mapping, Organization > Items.
      • Then edit the transaction in the Admin Console, use a different tax code and recalculate tax
    • An exemption certificate has been applied:
      • If an exemption has been applied, an icon will be displayed in the exemption column on the transaction
      • In the Admin Console, edit the transaction, change the Customer Code, and calculate tax
        • If tax calculates, revoke the exemption certificate
      • Check the transaction to see if there is an Entity Use Code.
      • Check the transaction to see if there is an Exemption Certificate Number.
    • An address is incorrect and the tax jurisdictions could not be determined
      • Review and correct the Origin and Destination addresses. Make sure all zip codes match the associated states
    • On the header or line level, a Tax Override has been entered for $0.00

 

NoteIf all of the above has been completed, and the rate remains unexplained, please contact Avalara Support.